For one thing the Fed tax ? Good luck trying to take that out it will never happen.

Anyway WATCH out as soon as you hear (lower payroll taxes) that only means that user fees are gonna go way up and sales tax as well <- if thats not enough they will have import taxes -> so everyone gets to pay more for products.

So your right hand see's a saving on payroll taxes but your left hand is dipping into your wallet to pay for higher fees. Simply what your saving is paid out over time.

That's what I said. They'd have to add a sales tax to make up for it, but those that are better off would be paying more of their fair share instead of jumping through loopholes in the State tax.

Well that depends on what they exempt or not... example if you exempt necessities like groceries , health needs, then maybe it could be fair. BUT if you tax everything, the poor and middle class will pay sales tax on 100% of their disposable income where as the more well to do would pay less because they stash some into savings and investments.

Also there is a problem with focusing taxes primarily on consumption. Consumption is what drives the economy... my consumption is someone's else's income ! (From Krugman's book - End this Depression, Now!). You stifle that and you choke your economy and jobs too boot ! not too smart.

The way I understand it in areas that have certain exemptions of the sales tax, certain packaging of the same commodity is taxed where other packaging is not. Like marshmallows. Small marshmallows are not taxed as they are considered food but large marshmallows are taxed as they are considered snacks. Same with certain packages of nuts and chocolate.

Other items would be also I suppose

Dave

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